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Q.What are the principles of management?

Telangana TsbieTSBIE Telangana Intermediate (2nd Year) Commerce Board 2017Subjective· 10mImportance★★★★★
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Principles of management are flexible, general guidelines for managerial action. The classic set is Henri Fayol's fourteen principles: division of work, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual interest to general interest, remuneration, centralisation, scalar chain, order, equity, stability of tenure, initiative and esprit de corps.

Meaning

A principle of management is a broad and general statement that guides managerial thinking and action. These principles are not rigid rules; they are flexible and must be applied according to the situation. Henri Fayol, a French mining engineer called the 'father of modern management', gave fourteen principles of management that are the standard answer in TS Intermediate 2nd-year Commerce (the topic is in line with the NCERT/CBSE commerce curriculum).

Fayol's Fourteen Principles of Management

  1. Division of work. Work should be divided into small specialised tasks so that each person becomes expert and efficient.
  2. Authority and responsibility. A manager must have the authority (right to command) to match the responsibility given to him; the two must go together.
  3. Discipline. Obedience to rules and respect for agreements between the organisation and its members is necessary for smooth working.
  4. Unity of command. Each employee should receive orders from one superior only, to avoid confusion and conflicting instructions.
  5. Unity of direction. All activities with the same objective should have one head and one plan, so that efforts are well directed.
  6. Subordination of individual interest to general interest. The interest of the organisation as a whole must come before the personal interest of any individual.
  7. Remuneration of employees. Wages and salaries should be fair and satisfactory to both the employees and the organisation.
  8. Centralisation and decentralisation. There should be a proper balance between concentrating authority at the top (centralisation) and sharing it with lower levels (decentralisation).
  9. Scalar chain. There should be a clear line of authority from the top to the bottom; messages normally flow through this chain (a 'gang plank' may be used for urgent horizontal communication).
  10. Order. There should be a fixed place for everything and everyone, so that materials and people are properly arranged. …

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